How cloud accounting technology can make a complex task easier
As government programs are cut back, more and more non-profits are rising up to meet community needs. On limited budgets, these organizations find volunteers and donations from the community to run their programs, in the process making our communities stronger.
For the executive directors of non-profit organizations, paying for non-program related activities – like accounting – can be difficult and requires some creativity.
Why non-profit accounting is tricky
Accounting for non-profit organizations can be tricky. In order to cover operational costs, non-profits often resort to finding small business-type activities, such as selling books, coffee and t-shirts, to help pay the bills or at least keep net costs down. These multiple revenue streams and cost-sharing between programs make for challenging financial reporting (even more complex than for most businesses). Simple accounting programs aren’t conducive to their multi-faceted reporting requirements.
Often, the funding and spending for a program don’t line up with the fiscal accounting cycle or includes capital expenditures that are accounted for differently than the program budget. And then there are “gaming” funds that need special tracking. It’s almost like they need two sets of books: one that satisfies the government authorities and one that management and funders can use to see how money was actually spent and what remains.
A Cloud solution to help simplify non-profit accounting
For growing and/or complex non-profits, a move to “Cloud technology” can provide some relief.
Benefits to moving accounting to the cloud for non-profits:
Funds devoted to a new system are well spent and allow over-tasked executive directors to focus on delivering programs rather than building spreadsheets. Get in touch to find out more about the latest accounting technology.
Brenda Kelm is a Chartered Professional Accountant, CA and Partner with Presley & Partners, CPAs and Business Advisors, in Courtenay, BC. She can be reached at 250.338.1394 or firstname.lastname@example.org.